The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-10-31
WHAT THE GAS DEAL MEANS
The City Will Not Be Supplied with the
New Fuel Until It Comes to Terms.
The Supply Will Probably Be Brought to the
City Limits and Held There Until One
Side Finds 1t Advisable to Yield.

1t is believed that the deal perfected Saturday,
between the three large companies owning most
of the leases on the natural-gas territory in the
Noblesv lille region, is the elimination of nego-
tiations begun several weeks ago. Statements
to this effect GO further in making it appear
that the Standard and Guffey interests have
been practically one from the beginning of gas
exploration in Indiana. Upon this it is assumed
that any option held on the latter covered the
properties of the Standard, and that when the
negotiations began between the Guffeys and the
Indianapolis company, early as August they
also referred to a deaf with the third company.
In brief, there must be disposal of the two
foreign interests in the same trade. if either
sought by purchaser. When the representa-
tives of the Indianapolis company returned two
weeks ago from Pittsburg. and announced that
their options 10 these gas lands extended only to
last Monday aud that if the trade was closed it
would be condition that the Council and
Board of Aldermen would amend the ordinance,
the truth told. After the refusal of the
Council committee to report last Tuesday
evening, when the Council treated the matter
rather summarily. the Indianapolis company
was inclined to retire from the field. But as at
fairs took such form favorable to continr-
ance of it's pipeline project without danger of
immediate competition. and as the terms upon
which all the gas properties named could come
under its control were so liberal. the advantage
was seized, and the deal contaminated. That
much is known without any official statement
from the company, as its directors still maintain
a reserve when approached relative to the de-
tails of the trade.
Until they get ready to talk speculation to
what the details is rife. and it is generally
believed that the Indianapolis company will
eventually be the sole owner, rather than O
party a consolidation, IN which the interests
of the three companies are equal and Identical
A gentleman who is a good euesser as to the
particulars of large trades. said last night: II
have learned nothing from any member of the
Indianapolis company as to what the basis or
details-of the negotiations were. but am will
ing to offer tempting bet that the facts, when
they are known, will be somet hing like these:
The Standard and Guffey people have agreed to
inch pipeline to points adjacent 10 the
city, and then turn II over to
the indianapolis company 1t is also
agreed on the foreign companies part to drill
twelve additional wells which, with the thirteen
now flowing. will give abundant supply of
gas for Immediate operations The options the
Indianapolis company held in the first instance
covered all these points, think. and had the
schedule of prices been advanced, the laying of
pipe would have begun at once under an agree
ment to complete the line by the 2Oth OF Decem-
Der. The failure to pass the ordinance. how
ever, caused The time for completing the line to
be fixed for the LIST of January. BY that date
Hauehville West Indianapolis and points
around the Belt will have natural gas"
will the consumption there be sufficient to
justify the outlay2" was asked
1.-THE company will not lose anything by that
policy There are large industries aud other
places in those localities which will consume
800. 900 worth OF gas annually. With this re-
turn, and q larger one assured the company can
afford to wait until it thinks it can best serve its
interests by bringing gas into the city. The
company, by waiting will lose less than the city,
and at the same time be IN an excellent position
to meet anv competition"
''If another company pipes into the city under
the ordinance prices what thens
Then competition will begin in earnest. and
believe the Indianapolis company in that event
would bring gas ia not only under the present or
dinance but cut the prices down TO cents per
thousand feet But until that 10 done it will be
a question rs to which can hold out the longest,
the Indianapolis company the people The
former, though. has the advantage, for its pipes
started on that work, and. besides, it has fifteen
miles of main already in the city which can be
utilized the moment they are connected with
the trunk lines 1t is not difficult to see how
all this is going to ei.d 1t all tends to giving the
people of Indianapolis cheap fuel. and perhaps
at much lower rates than have been at any time
taken into account"
IL announced yesterday that pipe laying
at Noblesville was then going on but this
gentleman who is to have charge of that work
denied. There is no pine at that town, he said.
but it is understood that the work is to COM
mence day. The pipe is to be laid along the
track of the Lake Erie & Western Railway, it
is asserted. and when it reaches the northern
limits of the city is to be connected with
branch leading to Haughville and West Indian
apois. The entire investment on completion of
the plant will more than ST. 000 600, as
there will be in the end two. and perhaps three,
trunk lines from Nobesville to the city limits. 1t
is said that the Standard and Guffey people got
5000 900 cash Saturday the first payment
for this work.
The Consumers Gas Trust Company was talk
ed about yesterday enterprise certain OF
success. so far raising the amount of money
required is concerned. But doubts were ex-
presses by many who willing to take
small number of shares. They will do this.
they said, because they do not want to keep
out of thing that promises to benefit the city,
plans can be accomplished. On the other hand
there we're others who suggested the uncertainty
Of the companvs gag supply. and went
far as that the lands which the
wells that to form a nucleus OF supply for
the Trust surrounded by other leases of
other companies He suggested that it weud
be difficult for the Trust to get its gas to mar
ket, as the competing companies could resist
any attempts to pipe across their lands.
The Broad Ripple pipe line, the promoters of
that enterprise say. will be ready for gas al
u ost that of the indianapolis com
pany. The Trust companys trustees are to
by whom the canvassIng for stock subscriptions
will be systematized and pushed rapidly to